Risk to Reward 2025

Donor governments –Direct scarce concessional capital to areas less attractive to private finance, such as adaptation. –Encourage MDBs and DFIs to take on more risk where commercial capital is absent. MDBs and DFIs –Avoid crowding out commercial finance. Instead, provide catalytic equity – especially junior and mezzanine capital – in the most vulnerable and underfinanced sectors. –Coordinate closely with concessional funders and private investors. Concessional capital providers and philanthropies –Target non-commercial but high-impact adaptation sectors where revenue models are weak, yet the climate benefits are high. –Act as early-stage enablers to crowd-in private capital over time.Project developers –Engage with country platforms or similar investment frameworks to build early visibility into project pipelines and establish partnerships with global investors. –Share comparable project-level data to help investors show adaptation and mitigation results to shareholders. Insurance companies –Collaborate with investors and developers at early stages of project development to identify, price and manage risks in a forward-looking and streamlined approach. Path forward As COP30 in Belém – the “implementation COP” – approaches, the message is clear: execution must take precedence over ambition. Depoliticizing the climate finance conversation will help build the stable political support needed for consistent policy frameworks and long-term investment planning. Now is the time to focus on: –Clarity: Translate national climate commitments into detailed, investable plans. –Confidence: Provide strong, de-risked platforms for capital to flow. –Collaboration: Align public, private and philanthropic actors behind shared goals. Without purpose-driven investments that align with national priorities, attract additional capital and meet real development needs, the world risks failing on both its climate and economic objectives. Climate finance enables EMDEs to realize their potential, create jobs and compete in global markets – while contributing meaningfully to global climate goals. The World Economic Forum is dedicated to advancing this mission, bringing together public and private sector leaders to transform ambition into real-world impact. Success depends on the collective ability of all stakeholders to channel resources where they will have the greatest impact, forge purposeful partnerships between local and global actors, and invest with clarity and confidence in projects that drive both climate and economic transformation. Only by moving from ambitious pledges to decisive execution can the full potential of climate finance be unlocked to ensure a sustainable, equitable future for all.The tools are out there, you just have to learn where and how to navigate these, both from an institutional and a human capital point of view. Christopher Marks, Managing Director and Head of Emerging Markets, MUFG Finance isn’t just about numbers and returns, it’s about the assumptions we make and how capital, when deployed with intent, can amplify positive change. Vaishali Nigam Sinha, Co-Founder, ReNew Public and private sectors are increasingly speaking the same language – trust is rising, new possibilities are opening and the art of the possible is expanding. That’s a game-changer. Dana Barsky, Global Head of Sustainability Strategy and Net Zero, Standard Chartered Bank From Risk to Reward: Unlocking Private Capital for Climate and Growth 45